Press Release  AG Campbell And Mayor Wu Host Public Service Loan Forgiveness Clinic, Offer Guidance On Student Loan Resources And Programs

BOSTON — Amidst an ongoing student debt crisis, today, Attorney General Andrea Joy Campbell and Mayor Michelle Wu hosted a clinic to help federal student loan borrowers access a time-limited opportunity to get closer to Public Service Loan Forgiveness (PSLF). This opportunity, called the Payment Count Adjustment, enables government and nonprofit workers to get credit toward forgiveness for past repayment periods that would not otherwise qualify. To benefit, some federal loan borrowers must consolidate their privately owned federal loans into the Direct Loan Program by Dec. 31, 2023.   

AG Campbell and Mayor Wu were joined by U.S. Senator Elizabeth Warren and Congresswoman Ayanna Pressley, along with student loan borrowers receiving forgiveness through PSLF, who emphasized the importance of the PSLF Program and the Payment Count Adjustment. AG Campbell, Mayor Wu, Senator Warren, and Congresswoman Pressley urged public sector and nonprofit employees to learn about PSLF and the steps they need to take to benefit from the upcoming Payment Count Adjustment. They also discussed available guidance and resources for borrowers.  

“We know the student debt crisis disproportionately impacts women, low-income borrowers and communities of color, acting as a driving force of the racial wealth gap,” said AG Campbell. “The Payment Count Adjustment is a game changer for the Public Service Loan Forgiveness Program and offers a strong and viable opportunity for many nonprofit and government workers to receive meaningful debt relief. Our office will continue to provide assistance to borrowers facing burdensome debt and the return to repayment.” 

"Here in Boston, we are blessed to have tens of thousands of residents who continue to choose careers devoting their lives giving back to their communities in service,” said Mayor Michelle Wu. “It is challenging and essential work, and it’s work that all of us rely on to keep our city running and thriving. And that’s why we’re especially proud to be here today to take just a little bit of weight off the backs of these workers, who’ve devoted their careers to shouldering so much of the burden for the rest of us. If you work for the City of Boston or any entity in the public sector or in public service—many nonprofits also qualify—please learn more about this program right away, and if you are eligible, apply today." 

“Thanks to fixes to the Public Service Loan Forgiveness Program by the Biden administration, thousands of government workers, servicemembers, nurses, and teachers are eligible for student debt relief,” said Senator Elizabeth Warren. “I’m thankful to join Attorney General Campbell, Mayor Wu and Rep. Pressley for this powerfully important clinic to help student loan borrowers access relief they deserve.”

“The student debt crisis demands an all-hands-on-deck response, at all levels of government,” said Representative Ayanna Pressley. “With student loan payments resuming, it’s essential that we connect borrowers to tangible resources as we continue the fight for broad-based student debt cancellation. The PSLF program is a profound opportunity for borrowers in the Massachusetts 7^th and across the Commonwealth. I am grateful to Attorney General Campbell and Mayor Wu for hosting this clinic and leveraging their positions to stand in the gap and help relieve families of the burden of student debt.” 

The PSLF Program forgives the remaining balance on Direct Loans after borrowers have made ten years of payments under a qualifying repayment plan while working at least 30 hours per week for the government or a qualifying nonprofit employer. For a limited time, through the Payment Count Adjustment, borrowers can receive PSLF credit for past repayment periods that wouldn’t normally count toward forgiveness—including for payments made on privately owned federal loans, payments made under the wrong repayment plan, late or partial payments, and certain periods of forbearance and deferment.  

Government and nonprofit workers who haven’t yet worked in public service for ten years can still get credit toward loan forgiveness through this time-limited opportunity. These borrowers can then continue earning credit toward forgiveness by enrolling in an Income-Driven Repayment plan, like the new, more affordable SAVE plan.  

However, borrowers with non-Direct Loans must consolidate those loans into the Direct Loan Program by Dec. 31^st to benefit from the Payment Count Adjustment. Borrowers with Direct Loans may also be able to maximize forgiveness by consolidating their more recent loans with their older loans by Dec. 31^st. 

More than 15,000 Massachusetts public service workers have already received over $1 billion in loan forgiveness through the Payment Count Adjustment and related programs.  

Staff from the AG’s Student Loan Assistance Unit, which houses the state’s Student Loan Ombudsman, assisted dozens of public service workers during today’s in-person clinic, helping borrowers to identify their federal loan types, strategize on consolidation, certify their public service employment, and enroll in Income-Driven Repayment plans.   

“My biggest frustration with student loans was the lack of information, reliable resources, and guidance. I thought I would be paying my student loans for the next 20 to 30 years – until I contacted the Attorney General’s Office,” said Nicole LeBlanc, a City of Springfield employee, who, after working with the AGO, had $70,000 of student loan debt forgiven. “The Office provided me with simple guidance and vital information through every step of the process, and because of the forgiveness they helped me get, I was finally able to achieve a life-long dream of buying my first own home.” 

Federal loan borrowers who do not work in public service can also benefit from the Payment Count Adjustment, which will give borrowers credit toward forgiveness under Income-Driven Repayment plans for past repayment periods and certain forbearance and deferment periods dating back to July 1994. Income-Driven Repayment plans offer forgiveness after 20 or 25 years of payments. However, to benefit, borrowers with privately owned federal loans must consolidate into the Direct Loan Program by Dec. 31^st. The AG’s Office is conducting a mailing in early November to nearly 40,000 Massachusetts borrowers who need to consolidate by the end of the year.    

Borrowers may visit the AG’s student loan assistance webpage for a comprehensive list of guidance and resources on student loans, including step-by-step instructions on accessing the Payment Count Adjustment, PSLF and lowering monthly payments through Income-Driven Repayment plans, including the new, more affordable SAVE plan.  

The AG’s Office has been offering regular student loan webinars to help borrowers access debt relief opportunities, including webinars for teachers, government, and nonprofit workers. To learn more about PSLF and the steps borrowers need to take to benefit from the Payment Count Adjustment, borrowers may sign up for a free upcoming webinar or view a recording of a past PSLF webinar here. 

Since taking office earlier this year, AG Campbell has taken a variety of steps not only to guide and assist student loan borrowers in navigating federal loan repayment options and ongoing debt relief initiatives, but also to protect borrowers amidst recent operational concerns with the return to repayment and legal challenges to student loan borrower protections. Most recently, earlier this fall, AG Campbell urged the Biden Administration to do more to protect borrowers amidst return to repayment problems and led a multistate brief to safeguard existing student borrower protections against predatory for-profit institutions.  

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